The India-Pakistan tensions in April-May 2025, sparked by a deadly attack in Kashmir and India’s Operation Sindoor, turned into a big mess. Pakistan’s retaliatory drone and missile strikes shook India, but how much damage did they really do? Did Pakistan manage to hit India’s stock market, and what else got affected? The Pakistan India conflict 2025 economic impact was more severe than expected, triggering financial, social, and political consequences across the region. Let’s break it down with the latest updates for Findowi readers.
Impacts on India
Pakistan’s actions spiked India’s inflation fears. Food and fuel prices rose as border disruptions slowed supplies. The Indian Rupee (INR) fell sharply, losing 17 paise to 85.41 against the US dollar. The IPL 2025 was suspended for a week, hitting businesses tied to cricket. Social media buzzed with fake claims, like Pakistan downing Indian jets, which India debunked. Despite the chaos, foreign investors kept buying Indian stocks, showing confidence in India’s economy. A ceasefire on May 10, 2025, calmed things down, but analysts warn that prolonged tensions could hurt India’s 7% GDP growth forecast.
What’s the Bigger Picture?
Both countries agreed to stop fighting after talks, with more discussions set for May 12. For now, India’s focusing on recovery, and investors are eyeing safe bets like gold. Stay updated with Findowi for more insights.
Modi Dirty Politics
Modi’s baseless blame on Pakistan for a Kashmir attack sparked a costly war. His dirty politics, aimed at winning Hindu votes for elections, led to India’s missile strikes on Pakistani civilians, including kids in a madrasa. Pakistan hit back hard, launching drone and missile attacks on Indian border areas. This retaliation cost India nearly $2 billion, with the BSE Sensex crashing by $83 billion, trade losses of $500 million, and IPL disruptions adding millions more. The world slammed India for attacking civilians and backed Pakistan’s defense.
When analyzing the Pakistan India conflict 2025 economic impact, experts point to the $83 billion crash in India’s stock market as a key indicator.
Modi’s reckless move, driven by anti-Pakistan sentiment to please voters, not only hurt India’s economy but also its global image. A ceasefire came on May 10, but the damage was done.
Why Does Modi Do This?
Modi knows India’s Hindu majority often dislikes Pakistan and Muslims. Playing the anti-Pakistan card gets cheers from his BJP supporters. In 2025, with elections looming, he needed a big move to distract from inflation and unemployment. Blaming Pakistan was his easy way out, but it backfired. The world slammed India for attacking Pakistani civilians, and countries like the G7 backed Pakistan’s call for a fair investigation. India looked like the bad guy, and Modi’s plan flopped.
Total Damage $
The BSE Sensex and Nifty crashed, losing about $83 billion in just two days (May 8-9, 2025). Trade got stuck as India-Pakistan borders closed, costing India around $500 million in export delays, since yearly trade is $2 billion. Rising fuel and food prices, with rice hitting Rs340 per kg, added $200 million in inflation losses. The IPL 2025 suspension hurt businesses by $50 million. Total damage? Roughly $84 billion.
